Export Inspection (Establishment Registration Charges) Amendment Regulations 2006 (No. 1)

The Export Inspection (Establishment Registration Charges) Act 1985 (the Act) provides for the imposition of charges in relation to the registration of export establishments. Section 9 of the Act provides that the Governor-General may make regulations, not inconsistent with the Act, prescribing matters required or permitted by the Act to be prescribed or necessary or convenient to be prescribed for carrying out or giving effect to the Act.

Section 6 of the Act allows for the imposition of charges in relation to the registration of an establishment or a class of establishments associated with the preparation of a “prescribed commodity” specified in the regulations. Section 7 of the Act provides that the rate of charge for the registration of an establishment is such rate as is applicable under the regulations, and the Export Inspection (Establishment Registration Charges) Regulations 1985 (the Principal Regulations) specify the commodities and the charges applicable.

The purpose of the Regulations is to amend the Principal Regulations to increase the rates of charge applying to the registration of establishments associated with the preparation of fish and fish products. The Regulations would also remove a redundant charge for applications for the transfer of registration for such establishments.

Section 3 of the Act provides that the Export Inspection and Meat Charges Collection Act 1985 (the Collection Act) is incorporated, and shall be read as one, with the Act. The expression “prescribed commodity” referred to in subsection 6(1) of the Act is defined in section 3 of the Collection Act to mean, inter alia, “fish”. The word “fish” is defined in section 3 of the Collection Act to include “fish products”.

The new charges have been modelled against expected activity levels in the financial year 2006-2007. They reflect an increase in fixed costs arising from the delivery of services to the fish and fish products export industry since the last increase to the charges in March 2004. In addition, since 2004 activity in the fishing export industry has declined due to a range of factors including increasing fuel costs, catch reductions and greater international competition. Despite this reduced activity, export conditions imposed by importing country authorities have remained stringent, a situation which has not enabled the Australian Quarantine and Inspection Service (AQIS) to reduce its costs in line with the decrease in industry activity. The impact of this situation provides the basis for substantial increases in fees.

To date, fluctuations in AQIS’ operating costs in relation to this export industry have been met by transfers from an Income Equalisation Account (IER) in which a proportion of over-recovered funds is placed to buffer AQIS and industry from unforeseen events resulting in under recoveries. However, the funds in the IER are now depleted.

The Seafood Exports Consultative Committee (SECC), which comprises key industry representatives, has been extensively consulted on the increase in rates of charge and the SECC has endorsed the new rates.

The Regulations are a legislative instrument for the purposes of the Legislative Instruments Act 2003.

Details of the Regulations are set out below.

Regulation 1 provides that the Regulations are named the Export Inspection (Establishment Registration Charges) Amendment Regulations 2006 (No. 1).

Regulation 2 provides that the Regulations commence on the day after they are registered on the Federal Register of Legislative Instruments.

Regulation 3 provides that Schedule 1 of the Regulations amends the Export Inspection (Establishment Registration Charges) Regulations 1985.

Schedule 1 - Amendments

Item 1 increases the charge for an application for the registration of an establishment for processing, packing or storage of fish or fish products from $200 to $334. The new rate of charge for an application applies to applications made on or after the day on which the proposed Regulations commence. This item also removes the rate of charge imposed in relation to the transfer of registration of such an establishment. The removal of this rate of charge reflects the fact that a transfer of registration is now recognised as requiring the same process as a new registration under the relevant Export Control Orders applying to the registration of an establishment for the processing, packing or storage of fish or fish products.

Item 2 increases the per year rates of charge applicable to all establishments dealing with fish or fish products described in items 1 to 6 of Schedule 1, Part 1 of the Principal Regulations. In particular, the increase in the per year rate:

• for an establishment described in item 1 as an establishment that is either land-based or a vessel; and is used solely for the storage of fish or fish products is from $630 to $949;
• for an establishment that is described in item 2 as an establishment that is a vessel less than 15 metres in length at the waterline; and is used for processing, or processing and packing, fish or fish products for export is from $850 to $1281;
• for an establishment described in item 3 as an establishment that is a vessel at least 15 metres in length at the waterline used for processing, or processing and packing, fish or fish products for export; or a land-based establishment (other than an establishment mentioned in item 5 of Schedule 1, Part of the Principal Regulations) registered for multi-line processing of, or processing and packing, fish or fish products for export is from $975 to $1,469;
• for an establishment described in item 4 as a land-based establishment (other than an establishment mentioned in item 5) registered for single-line processing of, or processing and packing, fish or fish products for export is from $850 to $1281;
• for an establishment described in item 5 as a land-based establishment registered for preparing live fish or partial processing of fish or fish products (other than freezing or final packing) is from $630 to $949; and
• for an establishment described in item 6 as any establishment not mentioned in item 1, 2, 3, 4, or 5 that is a vessel associated with the partial preparation of fish or fish products (other than freezing or final packing) is from $360 to $543.

These new rates of charge are imposed in respect of the periods set out in subregulation 4(1B) of the Principal Regulations and apply to periods that begin on or after the day on which these Regulations commence.